SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE

Export Charge

Marginal note:Charge imposed

• 10. (1) Subject to the exclusions provided for in subsection 11(1), every person who exports a softwood lumber product to the United States after October 11, 2006, shall pay to Her Majesty in right of Canada a charge as determined under this Act in respect of the export.

• Marginal note:When charge payable

  (2) The charge becomes payable at the time that the softwood lumber product is exported.

Marginal note:Exclusions

• 11. (1) The following exports of softwood lumber products are excluded from the charge referred to in section 10:

  • (a) exports from Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador;

  • (b) exports from Yukon, the Northwest Territories or Nunavut; and

  • (c) exports by a person referred to in section 16.

• Marginal note:Deemed export from Atlantic provinces

  (2) An exported softwood lumber product is deemed to be exported from Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador if the product underwent its first primary processing in one of those provinces from softwood sawlogs originating in one of those provinces or in the State of Maine.

• Marginal note:Deemed export from territories

  (3) An exported softwood lumber product is deemed to be exported from Yukon, the Northwest Territories or Nunavut if the product underwent its first primary processing in one of those territories from softwood sawlogs originating in one of those territories.

Marginal note:Export from a region

• 12. (1) If a softwood lumber product is exported from a region in a particular month, the amount of the charge in respect of that export is the amount calculated by applying the rate applicable for the month under subsection (3) or (4) to the export price of the product as determined under section 13.

• Marginal note:Deemed export from a region

  (2) An exported softwood lumber product is deemed to be exported from the region where the product underwent its first primary processing. If, however, the exported product underwent its first primary processing in Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, Yukon, the Northwest Territories or Nunavut from softwood sawlogs originating in a particular region, it is deemed to be exported from that region.

• Marginal note:Applicable rate — export allocation

  (3) In the case of an export for which an export allocation issued under paragraph 6.3(3)(b) of the Export and Import Permits Act is required, the applicable rate of charge for the particular month is

  • (a) 0% if the reference price for the month is more than US$355;

  • (b) 2.5% if the reference price for the month is at least US$336 but not more than US$355;

  • (c) 3% if the reference price for the month is at least US$316 but not more than US$335; or

  • (d) 5% if the reference price for the month is not more than US$315.

• Marginal note:Applicable rate — other cases

  (4) In the case of an export for which an export allocation referred to in subsection (3) is not required, the applicable rate of charge for the particular month is

  • (a) 0% if the reference price for the month is more than US$355;

  • (b) 5% if the reference price for the month is at least US$336 but not more than US$355;

  • (c) 10% if the reference price for the month is at least US$316 but not more than US$335; or

  • (d) 15% if the reference price for the month is not more than US$315.

• Marginal note:Reference price

  (5) The reference price for a particular month is the most recent four-week average of the weekly Framing Lumber Composite Price, published by Random Lengths Publications Incorporated, that is available at least 21 days before the start of the particular month.

• Marginal note:Reference price by regulation

  (6) If Random Lengths Publications Incorporated changes, at any time after April 27, 2006, the weights it uses to calculate the Framing Lumber Composite Price or ceases to publish the Framing Lumber Composite Price or any of its constituent prices, the reference price for a particular month is to be calculated according to a prescribed formula.

• Marginal note:Rounding

  (7) Each reference price shall be rounded to the nearest multiple of one dollar or, if the amount is equidistant from two multiples of one dollar, to the higher multiple.

Marginal note:Definitions

• 13. (1) The following definitions apply in this section.

  “FOB value”

  « valeur franco à bord »

  “FOB value” means a value consisting of all costs payable by a purchaser, including those incurred in the placement aboard the conveyance for shipment, but not including the actual shipping costs and the amount of a charge payable under section 10.

  “independent remanufacturer”

  « entreprise indépendante de seconde transformation »

  “independent remanufacturer” means a person who is certified under section 25.

  “remanufactured”

  « seconde transformation »

  “remanufactured” means, in relation to a softwood lumber product, that the softwood lumber product, in order to produce a semi-finished or finished softwood lumber product, has been subjected to changes including changes in thickness, width, length, profile, texture, moisture or grading, has been joined together by finger jointing or has been turned.

• Marginal note:Export price

  (2) The export price of a softwood lumber product is to be determined in accordance with the following rules:

  • (a) if the product has undergone only primary processing, the export price is the FOB value that is determined at the facility where the product underwent its last primary processing before export;

  • (b) if the product was last remanufactured before export by an independent remanufacturer, the export price is the FOB value that is determined at the facility where the softwood lumber used to make the remanufactured product underwent its last primary processing before export;

  • (c) if the product was last remanufactured before export by a remanufacturer that is not an independent remanufacturer, the export price is the FOB value that is determined at the facility where the product underwent its last processing before export;

  • (d) for a product described in paragraph (a), (b) or (c) in respect of which an FOB value cannot be determined, the export price is the market price for identical products sold in Canada at approximately the same time and in one of the following arm’s length transactions, listed in order of precedence:

    • (i) a transaction at substantially the same trade level but in different quantities,

    • (ii) a transaction at a different trade level but in similar quantities, or

    • (iii) a transaction at a different trade level and in different quantities; and

  • (e) if the export price determined in accordance with any of paragraphs (a) to (d) is greater than US$500 per thousand board feet, the export price is deemed to be US$500 per thousand board feet.

• Marginal note:Exchange rate

  (3) For the purposes of subsection (2), the rate of exchange in order to determine the export price in Canadian dollars of a softwood lumber product is the rate of exchange as quoted by the Bank of Canada at noon on the day before the day on which the charge referred to in section 10 becomes payable.

Marginal note:Surge mechanism

• 14. (1) The amount of the charge applicable to an export of a softwood lumber product from a region during a month is increased by 50% if

  • (a) the export is one that does not require an export allocation under paragraph 6.3(3)(b) of the Export and Import Permits Act; and

  • (b) the exports of softwood lumber from the region during that month exceed the monthly trigger volume applicable to that region.

• Marginal note:Exports in excess of trigger volume

  (2) Exports from a region for a month are considered to have exceeded the monthly trigger volume if the volume of exports from that region for that month exceed 101% of the monthly trigger volume for that region for that month.

• Marginal note:Trigger volume

  (3) The monthly trigger volume applicable to a region, other than the BC Coast as defined in subsection 6.3(1) of the Export and Import Permits Act, is the amount determined by the formula

  [A × (B/100) × 1.1] - C

  where

  A

  is the expected monthly American consumption of softwood lumber products, as calculated in accordance with the prescribed formula;

  B

  is

  • (a) in respect of Ontario, 3.15,

  • (b) in respect of Quebec, 4.39,

  • (c) in respect of Manitoba, 0.29,

  • (d) in respect of Saskatchewan, 0.42,

  • (e) in respect of Alberta, 2.49, and

  • (f) in respect of the BC Interior, as defined in subsection 6.3(1) of the Export and Import Permits Act, 17.43; and

  C

  is the amount by which the exports from the region of softwood lumber products during the previous month exceeded the trigger volume for the region for the previous month, if those exports exceeded the trigger volume for the previous month by 1% or less of that trigger volume.

• Marginal note:Trigger volume — BC Coast

  (4) The monthly trigger volume applicable to the BC Coast as defined in subsection 6.3(1) of the Export and Import Permits Act is the amount determined by the formula

  (A × 0.0186 × 1.1 × B) - C

  where

  A

  is the expected monthly American consumption of softwood lumber products, as calculated in accordance with the prescribed formula;

  B

  is

  • (a) in respect of January, the quotient obtained by dividing 0.7212 by 0.9288,

  • (b) in respect of February, the quotient obtained by dividing 0.9767 by 0.8944,

  • (c) in respect of March, the quotient obtained by dividing 0.9025 by 1.0014,

  • (d) in respect of April, the quotient obtained by dividing 1.3557 by 1.0707,

  • (e) in respect of May, the quotient obtained by dividing 1.1461 by 1.0679,

  • (f) in respect of June, the quotient obtained by dividing 1.1771 by 1.0405,

  • (g) in respect of July, the quotient obtained by dividing 0.9213 by 1.0508,

  • (h) in respect of August, the quotient obtained by dividing 1.0719 by 1.0501,

  • (i) in respect of September, the quotient obtained by dividing 1.0584 by 0.9953,

  • (j) in respect of October, the quotient obtained by dividing 0.9477 by 1.0636,

  • (k) in respect of November, the quotient obtained by dividing 0.8466 by 0.9435, and

  • (l) in respect of December, the quotient obtained by dividing 0.8746 by 0.8930; and

  C

  is the amount by which the exports from the region of softwood lumber products during the previous month exceeded the trigger volume for the region for the previous month, if those exports exceeded the trigger volume for the previous month by 1% or less of that trigger volume.